Two-Thirds of the Year Done? Time for a Money Check!

Might be hard to believe, but we’re now more than two-thirds of the way through the year! 

Many of us review work goals or holiday plans around this time. But finances? Well, they often get overlooked. 

This, rightly, calls for a money check. And no, it’s not just how much you’ve earned or spent. The check goes deeper into whether your financial habits are still working in your favour or need some steering. Here are 4 questions to get you started on your finances:

Is My Money in the Right Place?

Have you looked at where your idle cash is sitting? 

If you’re keeping a big portion in your savings accounts, for example, your money won’t grow much over time. Rather, you can keep it in fixed deposits as they tend to give good returns. 

Similarly, check each existing account and its updated charges. If you’re paying fees for account features that you rarely use, it’s better to switch accounts.

Have I Outgrown My Credit Card?

The card that suited you a few years back may not be the best fit today. This, naturally, is impacted by your spending habits over time. 

For instance, you travelled a lot earlier and had a travel credit card for airport lounge access and rewards. However, a big chunk of your expenses may now just be groceries and fuel. It’d now make sense to get a cashback credit card for cashback and rewards on your current spends.

Pro Tip: Check whether any of your rewards or miles are about to expire.

Are My Subscriptions and Debts in Line with My Budget? 

Even small habits can cause leaks in your savings and budget over time. A forgotten or rarely-used subscription here, a membership there — all of this can hurt your finances. This, then, is a good time to check such recurring expenses.

Similarly, if you

• Pay only the minimum due on your credit card
• Convert each big purchase into instalments
• Carry balances month after month… 

… your borrowing costs can easily go up. For this, pay your debts in full, whenever possible.

Speaking of debts, review all your existing cards, loans, and any other debts you have. Don’t just look at the amounts; check what each debt is costing you. For this, you can:

• Pay off high-interest debts
• Use balance transfer credit cards for multiple card balances
• Get a personal loan for debt consolidation

When Did I Last Check My Credit Score?

Your credit score is quite important for your finances. Banks and lenders check it while you apply for a new credit card or loan. In fact, your landlord can also check your score to know how financially responsible you are. A good score can get you debt at low interest rates, which means significant savings in debt repayments over time.

Check your score periodically to know where you stand, and work accordingly. Regular checks can also help you spot errors, which you can report to get your score corrected before the next application.

Let’s be honest: we all love ‘New Year’s Resolutions’ for finances. While they certainly give us a ‘fresh start’ mentally, it’s the periodic checks that actually helps build good financial health. 

With two-thirds of the year already behind us, do this money check and make the remaining months of the year count.